Legal Question in Intellectual Property in California

Legal coverage in the event of quitting?

I am a named defendant in a suit involving my previous employer against my old boss and new company. If I quit is my new employer obliged to provide me with legal representation at their expense even though I am no longer working with them? This is a publicly traded company and the suit is interfering with my day to day sales activities as a result of a TRO. I am concerned that I may be obliged to hire my own attorney at my expense if I quit .


Asked on 5/31/07, 6:56 pm

4 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Legal coverage in the event of quitting?

The time to consult your own attorney at your own expense is right now, because otherwise you have no independent source of legal advice. Don't quit, or do anything else you can't undo, before you have consulted an independent attorney.

You might need continuing representation, and/or you will need to file court papers of some kind, and/or you will need an attorney to write a letter to your present boss on attorney letterhead asking whether they are going to provide a "defense" (an independent attorney) or "indemnification" (payment for any damages you might get socked with in the lawsuit). Only an attorney who -you- hire and who works only for -you- is going to be able to give you independent advice, free from conflicts of interest.

You might possibly incur the cost of an attorney consultation for now, but you might get reimbursed by your present employer, either voluntarily or by court order at the end of the case.

If you have homeowners' or renters' insurance, the terms of the policy might (or might not) provide a free lawyer to defend you. Send your carrier a copy of the lawsuit and ask them to provide a defense.

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Answered on 5/31/07, 7:21 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Legal coverage in the event of quitting?

I don't think so; why would they be obliged to covery your defense costs even now? They are probably doing so to make sure there is a common front, but this shared representation may not be in your best interest. Maybe you should consider retaining your own defense counsel right now, or at least getting an opinion from an independent attorney as to whether you are well protected or if there is a conflict of interest, current or possible in the future. I see potential conflict of interest problems all over this.

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Answered on 5/31/07, 7:21 pm
Johm Smith tom's

Re: Legal coverage in the event of quitting?

I definitely agree with these guys; you are hoping the attorney for the company will consider what is in your interest but that isn't how it works. They will think of the company and possibly who is paying them first and you're way down on their list. You need your own attorney if this is a serious matter, and you need an attorney to tell you if it is or isn't. One of these guys or our CA attorney can help you with this.

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Answered on 5/31/07, 7:39 pm
Gordon Firemark Law Offices of Gordon P. Firemark

Re: Legal coverage in the event of quitting?

Ditto - you need your own representations (at least to evaluate the matter and see if the company's attorney is handling things appropriately).

Your employment contract may also be useful in determining whether the company will continue to fund your defense.

The Homeowner's insurance ( or any other business insurance you may have) is also worth looking at. There's no harm in asking the insurance company if they'll cover you...

Good luck

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Answered on 6/01/07, 12:00 am


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